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Airbus Boeing 23[1].


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  • 1. Building Air Planes Globally
  • 2.
    • Global Aviation Manufacturers: Airbus(Europe) and Boeing (America)
    • Transfer of technical know-how in Asia by Airbus and Boeing, as they were losing out their expertise for next generation aircrafts.
    • 70% of the Boeing 787 Dream-liner were built outside USA.
    • 60% of the Airbus A350 production was done outside Europe.
    • Manufacturing race contributed to the battle of racism and corporate war.
    • Major beneficiaries of the outsourcing work was Asia, especially Japan and China.
  • 3.
    • Founded by William E.Boeing & George Conrad Westervelt on 15 th July 1916.
    • Became the largest aircraft manufacturer, HQ in Chicago, Illinois (US).
    • Initially named “B & W” then named to “Pacific Aero Products” and finally “Boeing Airplane Co.”
    • In 1927 a new airline service, BOEING AIRPLANE TRANSPORT ,later merged with its earlier company.
    • First aircraft – Boeing 314 Clipper in June 1938.
    • Manufactured B707 in 1958 -- US first commercial jet airliner.
    • Acquired Piasecki Helicopter in 1960.
    • Introduced a twin engine 737 in 1967 -- A short & medium range airliner.
  • 4.
    • Crisis :
    • a) In 1970, Apollo program was cancelled
    • b) In 1971, US Congress stopped financial support for development of Supersonic 2707.
    • c) Employee strength reduced from 80,000 to half in Seattle.
    • As passenger traffic increased, competition became tougher hence Boeing introduced new aircrafts-757,767,737,777.
    • In mid- 1990, introduced Next Generation 737 or 737NG.
    • Merged with Mc-Donnell Douglas in 1997 due to which MD-95 renamed to 717-200.
    • The Boeing 787 or the Dreamliner is under development and is scheduled to enter services in 2008.
  • 5.
    • Formerly known as Airbus Industry.
    • Jointly owned by EADS(80%) and BAE(20%).
    • In 1967, MOU signed among British, French & German govt. to develop A300(with 300 seating capacity).
    • In 1972, A300 touched the skies for the first time.
    • Launch of A320 in 1981 helped Airbus emerge as a major player in aircraft market, had over 400 orders before its launch.
    • In 2003, Airbus delivered more jet-powered airliner then Boeing for the first time in its 33 year history.
    • On April 27, 2005, the A380 successfully completed its first flight from Toulouse to France with seat capacity of 555 passengers & would be world’s largest commercial passenger jet.
  • 6. Global Market Share In 2006 (Actual) By 2010 (Forecasted) Boeing 55% 51% Airbus 21% 31% Others (Bombardeir and Embraer) 24% 24%
  • 7.
    • Global Civil Aerospace Market
    • Boeing and Airbus dominated the large aircraft market (more than 100 seating capacity).
    • Embraer (Brazil) and Bombardier (Canada) dominated sub 100 market segment.
    • Major customers were national carriers providing both long haul and short haul services and low cost airlines.
    • US, Europe, Asia and Latin America were primary markets for aerospace industry.
    • Boeing had the largest market share in Asia (71%) and least in Europe (6%)
  • 8.
    • Boeing
    • In 1982, Boeing outsourced 15% of manufacturing process to Japan for developing Boeing 787.
    • In 2006, outsourced more than 35% for manufacturing Boeing 787 and Dreamliner.
    • Airbus
    • In march 2006 announced A320 production line in China - its first ever production facility outside Europe.
    • Super Jumbo A380 which was recently brought by Kinfisher Airlines to India was being built by non Europeans also.
  • 9.
    • Low labor cost and production cost (in China) helped companies to reduced manufacturing costs.
    • Acquiring parts and equipments from Japan and Canada helped to employ their expertise.
  • 10.
    • U.S enjoyed a close political relationship with Japan.
    • Boeing got 96% market share in commercial aircraft market of Japan.
    • Boeing also got subsidies from Japan.
    • Airbus set up manufacturing unit in China in order to prevent Boeing taking control over the market.
  • 11.
    • Boeing : Japan
    • Japanese government and industrial firm sought to establish Japan as an aerospace power.
    • Japan’s METI invested US$ 76 million to developing facility for aircraft.
    • Japanese aerospace manufacturing companies like MHI, KHI,FHI, JAL, ANA got contracts from Boeing 787 to manufacture the wings.
    • Carbon fiber instead of Aluminium was used in wings which increased fuel efficiency and Boeing revived their market position.
    • Airbus : China
    • China lagging behind Japan technological aspect of aircraft manufacturing.
    • Airbus outsourced its assembly work (less technical then wing design) to china.
    • Airbus announced its assembly site in China, its first ever outside Europe in 2005.
    • Airbus announced to invest $10 billion in China for 150 narrow body A320s.
    • It was a major push by Airbus to pull even with Boeing.
  • 12.
    • Asian aerospace giants could capitalize on outsourcing spree from giant players like Airbus and Boeing.
    • Close political and social ties to booming Asia Pacific market was certainly going to help.
    • China expected to become second largest aviation market in world after U.S.
  • 13.